IBM quarterly income misses on weak mainframe laptop enterprise

(Reuters) – Worldwide Enterprise Machines Corp reported a bigger-than-expected drop in first-quarter income on Tuesday, damage by tapering demand for its mainframe computer systems and a stronger greenback, sending its shares down about three %.

FILE PHOTO: A person stands close to an IBM brand on the Cell World Congress in Barcelona, Spain, February 25, 2019. REUTERS/Sergio Perez/File Photograph

The know-how big’s income in any respect its predominant enterprise models besides cloud, which has been the centrepiece of its turnaround technique, missed analysts’ estimates.

“We noticed good acceleration in our cloud enterprise… We now have an bettering trajectory as we transfer ahead,” Chief Monetary Officer Jim Kavanaugh stated.

Underneath Ginni Rometty’s stewardship, the corporate has shed a lot of its conventional companies and beefed up the expansion areas by way of offers similar to its $34 billion acquisition for Purple Hat Inc.

IBM returned to annual income progress within the final quarter of 2018, triggering expectations that its technique was taking roots.